Congo miners seek delay to 5% worker equity rule

Miners in the Democratic Republic of Congo are seeking a ‌delay to a government directive requiring them to grant a five per cent equity stake to Congolese employees, while unions are pushing for immediate enforcement ahead of a July 31 deadline, according to a document and three industry sources. No company has yet complied with the directive, a union leader said, even as authorities step up efforts to enforce local participation in a sector dominated by foreign ⁠investors. Congo is the world’s top cobalt producer and second-largest copper producer. African governments are increasingly seeking a larger share of mineral wealth as commodity prices rise, with Congo’s rule reinforcing an existing legal provision. A January 30 circular, seen by Reuters this month, requires miners to allocate the five per cent stake to Congolese workers and submit proof of compliance. Congo’s Chamber of Mines says key questions remain unresolved, including whether existing shareholders must transfer equity and whether the requirement applies retroactively to long-established operations, a mining executive and two union leaders said. The sources requested anonymity as they were not authorised to speak to media. Major miners including Eurasian ‌Resources Group, ⁠Ivanhoe (IVN.TO), Glencore (GLEN.L) and China’s CMOC (603993.SS) met the chamber on June 11 to coordinate a response, the executive said. Glencore and Ivanhoe declined to comment, while CMOC and ERG did not immediately respond. The chamber has formally requested a moratorium to allow consultations with stakeholders, though no alternative timeline has been proposed, the executive added. “This concern is widely shared ⁠by major companies,” the executive said, adding many were still awaiting clarity on the final framework. Congo’s mines ministry and Chamber of Mines did not immediately respond to requests for comment. Congo’s mines ministry will meet ⁠unions on Friday to “explain more” on the directive, one union leader said. Unions accuse mining companies of dragging their feet. A second union leader said miners had previously allocated about three per cent to worker-linked schemes, but that oversight ⁠of the funds lacked transparency. “That is why the government wants them to increase it to five per cent,” the second source said, adding it could support development in mining regions. “On the union side, we are demanding immediate implementation.”